for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year. helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting? the lexus ct hybrid. this is the pursuit of perfection.

time for the final trade. mike? >> you know, i like boeing but between the market, the sequester and if the faa goes along with this fix, i think the puts look great. >> tim? >> eli lilly. >> karen? >> i liked foot locker. i like it. >> dan? >> added to my nasdaq short today. trying to get a little patient in a few days. >> by the way, the results are in, karen won the street fight, according to you that tweeted in. i'm melissa lee. see you again at 5:00 for more "fast." meantime, "mad money" with jim cramer starts right now. >> you need to get in the game. going out of business and he's nuts, they're nuts! they know nothing!

i always like to say there's a bull market somewhere. "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money," welcome to cramerica. other people want to make friends, i'm just trying to save you a little money. my job is not just to entertain you but to educate and teach you on these tough days, call me at 1-800-743-cnbc. ask you a question. remember joe dimaggio? that hall of fame -- was it hall of shame? yankee? the guy who got shut down not a single hit in the 57th game after getting a base hit in 56 consecutive contests. how about michael jordan the 50-year-old now aarp member m.j. who didn't even start in the 2003 all-star game. what was that joker ted williams not batting again over .400 after 41? maybe it was like the -- all of these bums and losers came to mind today when i saw the air going off this market with the dow off 108 points falling flat

on its face, not to mention the s&p down the worst of the year, and the nasdaq nose diving 1.3%. you would think the averages could keep going higher and higher after seven straight weeks in the black, right? no, this session lays a loser of an egg. strip it of the lombardi trophy and check to see if it stopped doping, or at least got off the adderall. yeah, welcome to the world where one down day brings out the n naysayers. i could not believe how many times people hit me up all afternoon. to pronounce the market dead or at least ask me. come on, i mean, is it dead yet? when you're down this much, doesn't it mean the market must be on life support, dnr, don't resuscita resuscitate. before we say something positive about this session, let's go

over the purpose of today's selloff and, yes, i'm going to give them some of their due. we had federal reserve minutes that came out today. old, ones were old and they spooked the market. sounds like the fed's worried something good could be happening in the economy. something like they see like loan growth or job growth, we don't want that, right? job growth, that's terrifying. it means the fed won't keep interest rates down anymore. what we want, obviously, is permanent bad news. be careful, we had a similar selloff when the last notes came out, that was followed by a rally of epic proportions. as good a reason as any to take profits. then we have the sequester sneaking up on us again, that bid to cut federal spending with a meat axe. hmm, i thought we wanted government spending cutback? isn't that what people are clambering for? everyone says it's bad and it's going to hit the military really hard, right? lead story in "usa today" says so. let me ask you a question, how the heck did the philly defense

index hit an all-time high in this session if the defense department's really going to get whacked. the sequester bark may be a tad less than its bite. what kind of word is sequester anyway? i don't want to fear words that seem like they're kind of made up for the occasion like fiscal cliff. but i am hearing stories about no federal funding for health care and prisoners being freed and terrorists getting away with murder because that's what washington does. how about this toll brothers. they must have said something, the stock was down hideous. must have said the housing market's over, all over, the shouting, in the late innings, like the pathetic late innings when dimaggio didn't get that hit. i had the misfortune -- i read the release, i looked at the conference call. you know what? it was pretty good. superb, the best i ever -- and toll brothers was bearish back when it was right to be bearish. what do i know?

didn't people want to buy toll on a pullback? wasn't that the theme? down $33. seems like a pullback. wait a second, no, we don't want to touch that pullback. that would be like the google pullback to 650 before it went up to an all-time high of $806. most people don't want to go near the darn thing now that the uptrend's been broken. i heard that. the uptrend. same goes for -- tom brady who wasn't in the super bowl this year. uggs or lenar, when you saw that down $2.72, what were you thinking? i was thinking about eli manning. he couldn't get to the playoffs this year. no, maybe it was his joke of an older brother or should i say choke of an older brother after losing to a couple of rays in the latest super bowl. down $3.43 from the all-time

high. there goes the housing neighborhood of stocks. you know what? i always thought that pink panther didn't have any game. he might as well play for the lakers. they might not even make the playoffs. yet owens corning playing like that colby, where's the beef? it was hideous, and some sectors do worry me. the mining sector was atrocious. talking to stephanie link. action alerts plus code director, she's saying, wow, did you look at that? i saw freeport down big. the stocks i told you to be ware about last night, i am concerned about copper. it's been acting a little lame and that means china, indeed, may be slowing. i don't like to see the oil service index plummet, if we could break the 33-day streak, that wouldn't be all that terrible. i don't like washington backen o the front page. they're a short sellers delight. they come on the right moment to put the kaibosh on a rally.

and i am concerned about the payroll tax holiday going away. i'm worried about still higher tax, i think auto sales could be slowing. the dollar was as strong as it's been in months. those are all bad, all right? let's step back for a second. did anyone really think the rally could keep going up week after week after week? did anyone think we could maintain the streak any more than the hitting streak of joe dimaggio? did we expect the market to hit endlessly? oil down the hardest in two months. is that like cal ripken quitting in the end? the markets had an amazing run. we don't want the federal reserve to start ratcheting up interest rates all of a sudden. because as the late great marty said famously, i hope you got a chance to watch him on wall street week, don't fight the tape and don't fight the fed. and if the economy's going to slow down because of the fed, you don't want to fight that.

to me, as a gardener, not kidding, as a gardener, even if i am, indeed, a savage mean fighting machine gardener, i like to build in the concept of rain now and then. i like to believe you can have a garden variety squall. i just think we were due or overdue for a bit of rain. and maybe even a thunderstorm. and i include that for those of you who have no sports knowledge or like don't even pay for espn. can we go down again tomorrow? i don't know, i saw green bay lose a bunch of games this year. i've written off the yankees because they haven't made good offseason moves. why can't the market have another off session or two? right after joe dimaggio broke his street, on that 57th game, he had another mini streak, he did get 16 straight games after that with hits. one bad day didn't make him a bad player. he was just real due, overdue. here's the bottom line, i believe today was not an important watershed session.

there's things going wrong. okay. i think this market is a contender. and it isn't going to be not flat on the campus for long like on the water front. let's give it a rest, let it regroup. and i bet it comes back, maybe soon. john in florida, john? >> caller: hi, jim, back in september you suggested a stock dynavex, two months later the fda did not approve their hepatitis "b" vaccine and their stock was cut approximately half. now next week they're coming up for a vote again on this vaccine and i'd like to know what is your current opinion? >> remember, i took out -- "wall street journal" mentioned my name, first time in about five years, no, just kidding, they announced i got amylin wrong and dynavax. and i don't expect much from

next week. i do think the stock got overly down. but i said i got it wrong. i got things wrong and i got dvex wrong. i'm not making a big bet on it. let's go to pat in new york, please, pat? >> caller: jim, how are you? >> not bad, how about you? >> caller: i'm doing well. i'm doing well. you know, jim, in light of the growing number of cyber threats and the recent exposure to china, you know, posing a threat to not only our government but the global economy, do you feel that source fire is a good play in the market? >> i am concerned that these are high-flying stocks that when they make mistakes get crushed. i do believe in the thesis, but i feel like i've played the thesis a lot and i don't want to go overboard. for instance, i like flir and it's up 20% this year and if i own that one, i would ring the register.

okay. let's go to tom in new york, please, tom. >> boo-yah, mr. cramer. >> how you been? >> caller: new york, north country l. >> oh, man, b-52, what's going on? >> caller: just trying to survive the winter. >> yeah. >> caller: listen, thank you for all you do. i wanted to ask you, i'm a new investor, i'm a small investor. i've made a little bit of money in the last six weeks, but i'm really scared about this sequestration. should i sell my positions by the 28th of february and maybe just sit on the sideline let it ride out? >> i'm never going to try to talk someone into a market where they don't have the conviction to be able to stay in. i do believe if that's the way you feel and i'm -- remember, we had the fiscal cliff, turned out to be a buying opportunity, if you want to do that, you should sell beforehand and then buy it back, but i am not going to count anyone staying in if they have great fear. you have to know yourself. i'm not going to take that kind

of action for my charitable trust, but you have to know yourself. this market, don't write it off. i think it can still be a contender. but you know what, it got hammered today, i respect that. i respect what the bears have to say. "mad money" will be right back after the break. coming up -- slick speck? think you missed the boat on the boom in the energy? what's fueling america's oil and gas renaissance. stick around for jim's exclusive with the ceo. and later -- use the news? the markets caught a case of m&a fever and all the takeover chatter is driving some stocks sky high. but don't pile in behind the headlines. cramer sorts out where the real opportunity could lie just ahead. plus -- lost at sea? shares of nordic american tanker are down 40% in the past year.

is its recent dividend cut a warning of more rough seas ahead. or a commitment to get its business back on course? cramer talks to its ceo all coming up on "mad money." don't miss a second of "mad money," follow @jimcramer on twitter, have a question? tweet cramer #madtweets. send jim an e-mail to madmoney@cnbc.com, or give us a call at 1-800-743-cnbc. miss something? head to madmoney.cnbc.com. i've always kept my eye on her... but with so much health care noise, i didn't always watch out for myself.

with unitedhealthcare, i get personalized information and rewards for addressing my health risks. but she's still going to give me a heart attack. that's health in numbers. unitedhealthcare. a talking car. but i'll tell you what impresses me.

a talking train. this ge locomotive can tell you exactly where it is, what it's carrying, while using less fuel. delivering whatever the world needs, when it needs it. ♪ after all, what's the point of talking if you don't have something important to say? ♪

how the heck are you supposed to find bargains in the market like this one? where the averages seem almost unstoppable until today. even when they take a breather on days like today, the pullbacks are minimal. this is not a filings basement or century 21 where everything's dirt cheap. more of a nordstrom market where you need to go hunting. how do we go bargain hunting in this type of environment? well, you could say we look for

losers. stocks that have been absolutely hammered. and try to find the ones that have the ability to turn things around, make themselves into winners over time, at least in the not too distant future. take magnum hunter mhr, a company that sounds like some sort of clint eastwood movie, but it's a small oil and gas production outfit. a market cap of roughly $650 million, that's very small. but the company has top-notch unconventional assets in areas that we talk about all the time here on "mad money." the bakken shale, utica shale in ohio. as well as natural gas exposure the marcellus shale. that said, this stock has truly been put through the meat grinder. we last spoke to magnum hunter a little more than a year ago when the stock was trading $6.40 a share, i know many of you bought it then, many of you are not happy since it's fallen 40% since then. what went wrong? well, actually a bunch of things. the company shut in a bunch of natural gas wells and curtailed

production in part because there wasn't enough processing capacity. at least nearby. they had an accounting error and replaced the chief accounting officer. did a big secondary offering in may that crushed the stock and missed the numbers when they reported in november. that said, over the last year, they've moved away natural gas towards oil where it gets 63% of the production from oils and liquids. it's up 137% in the last quarter. company doubled the approved reserves. magnum hunter has catalysts that could help make this stock bounce, maybe bounce back with a vengeance. expected to sell all or most of the eagleford assets. plan to do a joint venture with the utica shale acreage, which we could hear about any day and also plans to spend off the subsidiary. there are some worries here, i did a long introduction, i wanted you to know how i feel about the people who feel they're angry at me because i brought the company. considering they report on monday, missed last time, there's a lot to look forward

to. management has a bunch of plans to unlock value. is that enough to take the stock from zero to hero? let's find out more about where his company is headed. welcome back, sir. >> thank you, jim. >> okay. there's a piece of research that came out from ubs. it says time to market the catch, time to harvest multiple asset monetization in the horizon. true or false for magnum hunter? >> true. >> so you think there are -- that the value is going to be unlocked. because the value since the last time you're on has increased dramatically even as the stock has decreased dramatically. >> that's exactly right. you know, we've been saying all along that the sum of the parts is much greater than where the company's stock is trading today. what do we do to change that? so we've made a decision to divest one of our divisions. the most mature division, which is the eagleford of south texas. we have a limited amount of acreage, only 26,000 acres, but some of the best wells in the whole play. so that is one of the properties

that we've been marketing and we hope to announce something in the near future about how we're going to divest that asset and use that cash to redeploy into our other plays. >> what happens? it was just a bunch of -- there are a bunch of things that some were not under your control. natural gas prices went down. but throughout this period, you've been growing your production, which is what i want to see out of an oil company. >> our production's up substantially. we started last year under 10,000 barrels a day and ended the year at 18,500. and we've given guidance this year of close to 25,000 barrels a day as an exit rate. all we can do is continue harvesting what we have. we are extremely excited about the new play, we're drilling there march 15th, probably at least five wells there this year, continue to add to our acreage position, we see that as a catalyst as well as reducing some debt. there's concern we have too much debt. we don't believe so. i'm a former banker, i think we've got plenty -- we're well capitalized. but the market wants to see

lower leverage and wants to see growth and we're going to continue to do that. we're in the long-term. this is not a short-term play. we're in this business for long-term. >> you don't have any large amounts of debt coming due any time soon. >> we have zero debt coming due. >> again, i'm mystified. i know viewers are angry at me because i brought you and said it was a speculative play on oil. you delivered, there were mistakes. you had your first well in the new acreage was required. mid january 2013. so there could be good news on that front. >> wilson basin is a real focal point for us in 2013. we've been drilling wells all over this county which is, i think, in the past been viewed, oh, you're a little bit out of the fareway. now we've got the big boys all around us, st. mary's trying to lease acreage around us, and we're having wells with ultimate recoveries 500 to 750,000 barrel eur, that's some of the best wells in the entire place.

we're pretty excited now that we've drilled enough wells, we can focus in on those sweet spots in 2013 that will give us the highest rates of return. same thing down in the marcellus. you mentioned earlier in the show that the gas plant was a big issue for us. we had this plant that we commissioned with -- and the plant went live finally on december 17th. and that was about $1.40 uplift on natural gas. makes our marcellus wells which are 25% liquids rich have eurs in the 60% to 70% range. there's no other gas play in the united states that can compete with that. >> at the same time, when we were visiting chesapeake in utica, they thought there was a lot more oil in utica, at least under their properties and turned out to have a lot more natural gas. could utica be a disappointment for you as some would say it was for chesapeake? >> i don't believe so. there's been enough wells drilled now that we can pretty

well delineate where we think the play -- it's more of a north/south play than it is east/west. as you go further east, you're going to have dry gas. there's no question under some of our leases we're going to have high volume, dry gas wells. but as we go further west in the play, over noble and washington counties, it's have much a liquids rich place. we're expecting 40% to 60% liquids, the rest being natural gas. >> good point because ohio's a big state and that is not that close to where we were. now, i have not seen a lot of deals recently with big foreign companies coming here. look, there was a plethora last year. are foreign companies still interested in buying large tracks of land in the united states to be able to make sure they have oil and gas? >> i don't think there's any doubt that the foreign companies throughout the world in the areas that we've been talking to are china, india, korea, and japan. they want to learn our technology. and -- but i do think they've gotten a lot smarter.

a number of them have blundered investments in the united states. they're a lot choosier. i think there's plenty of opportunities for us to bring in those kind of investors if we so wanted. they're going to be in your offices, looking down your neck. it's good and bad to bring in partners. >> absolutely, look, gary evans, thank you for coming on. a lot of people felt like -- you're a gent to come on the show and fill us in. i appreciate you being on "mad money." >> this is going to be a great year for magnum hunter. >> okay. you've now heard for people. it's kind of like if you think about it, if you didn't know the story you've got to admit it's attractive, a lot of people are probably upset. but gary evans came on, he gave you the story and now you have the current information. gary evans chairman ceo of magnum hunter resources. stay with cramer. coming up use the news?

the market's caught a case of m&a fever. and all the takeover chatter is driving some stocks sky high. but don't pile in behind the headlines. cramer sorts out where the real opportunity could lie just ahead. today is gonna be an important day for us.

you ready? we wanna be our brother's keeper. what's number two we wanna do? bring it up to 90 decatherms. how bout ya, joe? let's go ahead and bring it online. attention on site, attention on site. now starting unit nine. some of the world's cleanest gas turbines are now powering some of america's biggest cities. siemens. answers. how do you keep an older car running like new? you ask a ford customer. when they tell you that you need your oil changed you got to bring it in. if your tires need to be rotated, you have to get that done as well. jackie, tell me why somebody should bring they're car here to the ford dealership for service instead of any one of those other places out there. they are going to take care of my car because this is where it came from. price is right no problem, they make you feel like you're a family. get a synthetic blend oil change, tire rotation and much more, $29.95 after $10.00 rebate. if you take care of your car your car will take care of you.

we all work remotely so this is a big deal, our first full team gathering! i wanted to call on a few people. ashley, ashley marshall... here. since we're often all on the move, ashley suggested we use fedex office to hold packages for us. great job. [ applause ] thank you. and on a protocol note, i'd like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh i'm sorry guys. ah sometimes the caps lock gets stuck on my keyboard. hey do you wanna get a drink later? [ male announcer ] hold packages at any fedex office location. don't you get suckered in. that's how i feel about this takeover rumor that we see in what is only a foot away from

being a frothy market. i say a foot away, not an inch away or already over, valuations are still low enough there's room for more deals than we already have. take today, we woke up to a swedish financial tabloid report that joy global might be in the crosshairs of atlas copco, which makes mining equipment like joy global. i've been a huge fan of joy global and recognize it's one of the premier companies in the world with huge business in china, india, and the united states. the company has acknowledged plenty of weakness in the united states thanks to slowing coal production, that china's only gradually picking up and india's simply not big enough to counter the head winds from the people's republic. it used to be much higher in stock price and terrific service revenue annuity stream. it does make the earnings more consistent than you'd otherwise expect. i don't think you should chase it here. if the takeover rumor turns out not to be true, i see the stock

falling a quick three to four points, low 60s, maybe as low as 60. how about the note out of bmo capital this morning? that kohl's could be a leverage buyout target because the department store has fabulous cash flow and owns cheap real estate. now, look, i like to shop at kohl's. i go through shirts constantly because that pancake make-up otherwise you think i'm sick. it's got ingrained in my collars. what you thought i looked this good naturally? and kohl's has inexpensive shirts i can afford to throw away after a few wearings. by the way, it's my go-to place for socks. wearing them right now, as a matter of fact. and terrific slacks franchise. now, i didn't get this at kohl's. but i've always bought a lot of kitchen goods there. is this the right time for the department store? is this the time you could see kohl's catching a bid 30% higher than the stock trades? sure, yeah, the last quarter was

okay. but you can get hurt by it if nothing happens. i've got to tell you to pass on that opportunity. finally, there's the off-rumored best buy takeout. a local paper in minneapolis says best buy founder richard schultz may still bid for the company, still being the operative term. a deal -- they're flogging this story is still on the table. terrific. it's been on the table for nearly seven moldy points now and those have been seven costly ones to hold on to. although the stock dipped well below the levels before recovering after a decent quarter and couple of upgrades. would the "star tribune" know what's going on here? would anyone? does the swedish tabloid really have the inside track on atlas copco's next big move? the bottom line is call me skeptical, i can't countenance buying any of these stocks on the takeover basis even though

there are more takeovers that you can really this far in 2013. there's too much rumor mongering and too few facts. enjoy the rumors, just please don't get taken in by them. let's go to randy in vermont, please. randy? >> caller: hi, jim, thanks for taking my call. >> what's going on? >> caller: well, my question is about staples, spls. >> right. >> caller: bought it a couple of years ago on a pretty good dip. it looked undervalued, had a good dividend yield and i really liked our local store. since then, i've purchased a little bit more on dips to maintain the core position. but yesterday, this was a low beta stock or one. yesterday it had a 10% -- i'm sorry a 12% gain. and today lost 7%. just wondering, jim, your thoughts on staples. >> i'm now giving you two ways to win in staples, the office

max/office depot combination on off, on off. there's also chatter that staples could do a leveraged buyout. now, if this stock were at 18, 19, it wouldn't matter, i'd tell you to sell it. but this point in the job formation, small business formation, i think this is one down and 2 1/2 to 3 up and that's a ratio that i want to participate in. so i think you're okay. john in california, john. >> caller: boo-yah, jim, sacramento valley, california. >> oh, man, three rivers intersection boo-yah to you, partner. what's up? >> caller: i'm a warren buffett groupie, i love berkshire and i have some and i'm wondering what the acquisition of heinz, what's going to happen with all of this talk about insider stuff. is that going to affect anything? >> no, look, warren buffett, i was embarrassed to have to read these stories. warren buffett -- these guys -- warren buffett is the best that has ever been and perhaps the best that ever will be. he's dimaggio, he's michael

jordan, and i think the stock's terrific and i've liked it now for some 30 points. i'm not backing away and you shouldn't either. seems like takeover mania, but don't get caught up, the m&a hype is encouraging, but i sit out the speculation. i'd rather buy the socks at kohl's than buy the stocks of kohl's. don't move, "lightning round's" next. ♪ ♪ ♪ [ male announcer ] what's the point of an epa estimated 42 miles per gallon if the miles aren't interesting?

the lexus ct hybrid. this is the pursuit of perfection. the lexus ct hybrid. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable, plus at office supply stores. rewards we put right back into our business. this is the only thing we've ever wanted to do and ink helps us do it. make your mark with ink from chase. transit fares! as in the 37 billion transit fares we help collect each year. no? oh, right. you're thinking of the 1.6 million daily customer care interactions xerox handles. or the 900 million health insurance claims we process. so, it's no surprise to you that companies depend on today's xerox for services that simplify how work gets done. which is...pretty much what we've always stood for.

with xerox, you're ready real business.

it is time. it is time for the "lightning round" on cramer's "mad money." rapid-fire calls, i don't know the calls or stock questions ahead of time. play until this sound -- and then the "lightning round" is over. are you ready skee-daddy? time for the "lightning round" on cramer's "mad money." dave in mississippi, dave? >> caller: hey, jim, big boo-yah to ya from columbus air force base in mississippi. my stock tonight is u.s. airways. >> i've been waiting for a pullback. i've been waiting for a pullback on this because this group has gotten hot. you're getting the pullback, i'd pull the trigger. bill in arkansas, please, bill? >> caller: boo-yah from the land of opportunity, advance auto parts.

>> okay. i like advanced auto parts and i would be a buyer of it. let's go to keith in georgia, please. keith? >> caller: hey, jim, a big low country savannah, georgia, boo-yah to ya. >> wow. what's up? >> caller: i've been looking at coach, do you think it's time to buy on the recent weakness? >> i can't tell you to sell it. it's down too much. maybe buy some and when the yield gets to three, buy the rest. let's use that as a strategy. let's go to fred in montana. fred? >> caller: hey, coach cramer. >> what's up? >> caller: how do we set a projection for zts or other ipos? we really thank you for your help. >> okay. thank you. this is a better ipo than most, the animal health spinoff of pfizer, another one i wanted to wait for a pullback, i'm not going to back away. i'd be a buyer of zoetis. gavin in washington. >> caller: this is gavin, how's it going? >> all right. how about you there, gavin?

>> caller: good. my question to you is it a good buy since -- >> no, no, and we don't want to touch that group. we don't like the gold, we don't like the silver, and miners, we don't want them. if you want it, buy the gld. alex? >> caller: boo-yah, jim. >> boo-yah, alex. >> caller: atwood oceanics. >> no, i don't want to get into this one until it comes down more. if i want to get into one that's high, i would do core labs at 130. let's go to janet in new jersey. janet? >> caller: jim, how are you? >> all right. how about you? >> caller: good, neighbor. >> oh. excellent. go ahead. >> caller: i want your opinion -- i want your thoughts on excelon. >> they are too poorly run. i had aep on yesterday, they're a much better buy and i don't know that they're doing well and i don't like dividend cutters. judy in missouri.

judy? >> caller: yes, jim, hi. >> hi. >> caller: jim, i'm calling on priceline. if you could -- >> i like price line. i like priceline. home away reported a really good number of tonight. i do believe in this group. but remember, people are going to say, listen, we're in a selloff and they're going to come for these high-dollar stocks first. what you want to do is be wary and let it come in before you buy any. but i would not panic out. and let's go to john in massachusetts. john? >> caller: hey, jim, big boo-yah from massachusetts. my stock is opko. >> we know it's a speculative stock, you take a quarter of the position off, otherwise, let's let it ride. i do believe that opko is going to be a big stock in 2013. and that, ladies and gentlemen, is the conclusion of the "lightning round." >> the "lightning round" is sponsored by td ameritrade.

coming up -- lost at sea? shares of nordic american tanker are down 40% in the past year. is its recent dividend cut a warning of more rough seas ahead? or a commitment to get its business back on course? cramer talks to its ceo. ♪ [ indistinct shouting ] [ male announcer ] time and sales data. split-second stats. [ indistinct shouting ] ♪ it's so close to the options floor... [ indistinct shouting, bell dinging ] ...you'll bust your brain box. ♪ all on thinkorswim from td ameritrade. ♪ there. i said it. they don't have pictures of my kids. they don't have my yoga mat. and still, i feel at home. could it be the flat screen tv? the not so mini fridge?

♪ the different free dinner almost every weeknight? or maybe, it's all of the above. and all the rest. am i home? nope. but it almost feels that way. homewood suites by hilton. be at home. homewood suites by hilton. living with moderate to semeans living with pain.is it could also mean living with joint damage. humira, adalimumab, can help treat more than just the pain. for many adults, humira is clinically proven to help relieve pain and stop further joint damage. humira can lower your ability to fight infections, including tuberculosis. serious, sometimes fatal events, such as infections, lymphoma, or other types of cancer, have happened. blood, liver and nervous system problems, serious allergic reactions, and new or worsening heart failure have occurred. before starting humira, your doctor should test you for tb. ask your doctor if you live in or have been to a region where certain fungal infections are common.

tell your doctor if you have had tb, hepatitis b, are prone to infections or have symptoms such as fever, fatigue, cough, or sores. you should not start humira if you have any kind of infection. ask your rheumatologist about humira, to help relieve your pain and stop further joint damage.

when you're looking for new places to live, you don't buy the best house in a bad neighborhood. and that same logic has been holding true for stocks. consider the case of nordic american tankers, n.a.t., it is the best tanker company in the industry, terrific management, the cleanest balance sheet in the business. but the oil tanker business itself has been terrible for years now because of a massive oversupply of ships that have been keeping day rates down for everyone in the space and day rates of the key metric. sure enough, nordic american has been hammered. they had to cut the dividend by more than 46%, more since it started 1997. but, you know, they -- they had to pay the dividend out of cash on hand. and in response, the stock's

holding off 5% in a single day. down huge from $25 two years ago. but maybe, maybe nordic american's hit rock bottom. the stock spurred, with the chinese economy coming back, that term might be closer than it seems. and you know what? maybe the worst has already happened as they practically cut the dividend in half. perhaps this is -- let's say the dark is before the dawn moment or is another dividend cut going to happen? that's why we've got to talk to the founder, chairman, and ceo of nordic tankers. welcome to the show. >> thank you for inviting me. >> have a seat. >> thank you. >> we have a big glut of oil in this country. >> yep. >> i'm sure at one time you had to bring a lot of oil here. >> yes. >> but now we produce a lot of oil. >> yep. >> how much has that hurt the business? and can china, which we think is coming back offset it? >> china is offsetting it as we speak.

we in our business we have 15% of our ships in america. the essential dimension in a tanker business is miles. where the oil is produced and where it's consumed. and we see a lot of oil going from at least china to west africa to china. and that more than outweighs the reduced import into the united states. >> okay. at what point -- >> i had the positive outlook now. >> okay. at the same time, you had to cut the dividend, the stock has not done well, the group has not done well. your stock is part of a group. at what point -- you've got some numbers in your release about how maybe there's not going to be as many ships being made, but at what point do you have to say, look, our business is going to be bad for the duration, it's not coming together. >> it is coming together now. i have personally invested many, many millions in the company. >> oh. >> and recently, and that shows

that i -- i put the money where the mouth is, you know. >> you had to cut the dividend. >> yes, but that is a kind of allocation in the direction of new buildings. >> okay. >> we wish to expand and instead of giving the money back to shareholders, we will buy new ships and increase capacity. >> but you have been buying ships all the way down. >> yeah, well -- >> wouldn't it have been better if you just conserved the cash or given it back to shareholders. rather than buy them all the way down because we don't seem to know where the bottom is. >> well, i believe we're at the bottom. >> you do. >> as we speak. and i'll give you an example. >> please, please. >> during the last 13 years, nine years have showed rates in excess of $30,000 a day. >> okay. >> when we have $30,000 a day, the dividend will be between $2 and $3. >> absolutely. >> which is 28% increase.

and we are in an excellent position -- >> you've got -- i'm quoting from you, the current order book stands at a total, 54 vessels. they're still making them. >> yeah, 54 vessels. what's that. if there is 1 million barrels of oil increased in saudi arabia going to china, all these 54 vessels are absorbed. >> they just cut the saudis, they cut the production. >> that is the short-term aberration. >> okay. >> but look at the transportation sector, which is the biggest one. eight years ago, in china, 3.9 million. and now they are at 15.4 million. in china, they have a car density of 85 cars per thousand. >> and they're getting -- >> and they are getting there. and in china they consume two barrels of oil per person per year. here, you -- consume 26 barrels

of oil. their potential in the far east is much larger than people think. >> but there's the other guys are still in it. why haven't they -- and some guys have gone under. >> a lot of them have. >> right. but there's still -- what day does the marginal carrier go under -- you get to go to 15,000 a day? >> but i -- i can tell you, jim. >> okay. >> today i can buy a new ship from the yard sitting at the yard at $52 million, $53 million. four years ago it was more than $100 million. so an asset costing more than $100 million. a few years ago, we can now buy it $50 million. and that shows the colossal upside we have. and i'm not satisfied with the stock price. >> no, i know you're not. look, you are a good man. you come on the show, obviously the stock's been bad, but, you know, you're sticking by your conviction. >> yes.

>> i want to have that last ship be built, no more ships built, ships starting to be scrapped more aggressively and then you're still not in the seat. >> you see next year, will be the first year when the fleet is shrinking. >> okay. >> and that can be a turning point. >> all right. >> you have the expression inflexion point, you know, i believe. and that is why i have invested so much personally. and when -- i'm not saying if, when the market comes back, our shareholders will make tons of money. >> and i'm absolutely convinced of that. but it's got to come back first. >> you never know as you said in the introduction, it's always darkest before dawn. >> you're a patient man and honest man to come on, but it's been early. >> well, we'll see. >> okay. >> we'll see. >> that's the founder and chairman of nordic american tanker. comes on the show, stock's been tough, but you've got to respect his view. he's in the business for --

well, you're in the business for a very long time. >> 40 years. >> there you go. "mad money's" back after the break. thank you, herb. >> thank you. coming up -- you plan, you play, you try to be perfect. can your strategy stand up to cramer's test? call, e-mail or tweet @jimcramer to find out if your portfolio has what it takes in "am i diversified." clients are always learning more

to make their money do more. (ann) to help me plan my next move, i take scottrade's free, in-branch seminars... plus, their live webinars. i use daily market commentary to improve my strategy. and my local scottrade office guides my learning every step of the way. because they know i don't trade like everybody. i trade like me. i'm with scottrade. (announcer) scottrade... ranked "highest in customer loyalty for brokerage and investment companies."

hey, the market's full of

pitfalls. i think you can avoid them or at least lessen them if you know what to look out for. for example, it's easy to get caught up in the rumors surrounding the next big takeover candidate. we talked about that earlier in the show. you're so sure you found the next hot stock. you want to throw everything you have at it, a whole bunch of, but then rumors and all of those steaming hot stocks don't pan out. things fall through and you're left in -- >> the house of pain. >> and that's why each week we play am i diversified. you call me, tweet me, tell me your top five holdings. i'll tell you if you're diversified. maybe you need to mix it up a little. down 100 days are the best days to play this game. let's go to a twitter -- you know, the tweet thing. he says, hi, jim, i am new to your show, been watching for about a month now, am i

diversified. bank of america, bristol-myers, ford, lng, and toll brothers tol, all right. so let's take a look at this one, ecigs2quit. i just like to say that because it's completely nonsensical to me. toll brothers housing company, reported good number. lng, they're going to be the first exporter of natural gas in this country and i think that you can say that's a bit of a speck. bristol-myers, charitable trust name, one of the best drug companies around, bank of america, financial ford motor, of course, the auto company. we've got auto, liquefied natural gas, housing, drug, and we have bank. that is perfection. ecigs2quit. maybe a more traditional name in here. donna in georgia. donna. >> caller: boo-yah, jim. gosh, i'm thrilled to talk to ya. >> same. what's going on? >> caller: i'm in italy, i'm a student currently of the executive mba program at georgia

state university. >> way to go. >> caller: class of 2014, baby. i've got a lot of great professors, but none of them are as handsome as you are. >> really? what kind of faculty you got down there? >> caller: i'm telling ya. so, i need your help professor, i'd like to know if i'm diversified. >> okay. >> caller: my stocks are valero energy vlo. cvs caremark. triangle capital corporation, tcab, qualcomm incorporated, qcom, and lastly consolidated edison ed. >> let me go to work, thank you for the fine comments. for a moment, there, i'm looking okay. someone tweeted @jimcramer and said i looked sick today. you know, i read these things. i should not pay any attention to it. let's go to work here. we have a specialty finance company. there's a lot of those companies like that. i like them, we tend have to

good yields, good upside. a drugstore company, pure tech name, remember, behind all the 4g. the best refiner in america and con-ed utility, refiner, tech, drugstore, finance. perfect, they teach them well at georgia state. cheryl in florida. cheryl? >> caller: cramer, it's cheryl, palm beach gardens, how are you doing? >> not bad, how are you? >> caller: i'm great, i'm great. i've followed your lead and every one of my stocks is dividend stocks. >> all right. >> caller: general electric, ge, at&t, petmed express. >> okay. >> caller: and altria, and intel, well, intl. >> well, sunshine, i like this portfolio very much. i do like that yield aspect because altria one of the best presentations this week.

terrific, terrific deal. maybe you don't like to smoke, whatever. good yield intel, att fine-yielding telco company. and i think that windstream is not where i want to be in terms of high-yielding companies. ge, company that can boost the dividend and pets med a little more speculative. we've got a health care -- health care company. we have a semiconductor, a telco, a tobacco and we have a general industrial company and, again, we're 3 for 3. stay with cramer. great, everybody made it.

we all work remotely so this is a big deal, our first full team gathering! i wanted to call on a few people. ashley, ashley marshall... here. since we're often all on the move, ashley suggested we use fedex office to hold packages for us. great job. [ applause ] thank you. and on a protocol note, i'd like to talk to tim hill about his tendency to use all caps in emails. [ shouting ] oh i'm sorry guys. ah sometimes the caps lock gets stuck on my keyboard. hey do you wanna get a drink later? [ male announcer ] hold packages at any fedex office location. is moving backward. [ engine turns over, tires squeal ] and you'll find advanced safety technology like an available heads-up display on the 2013 lexus gs. there's no going back. on the 2013 lexus gs. try running four.ning a restaurant is hard, fortunately we've got ink. it gives us 5x the rewards on our internet, phone charges and cable,